Procurement Basics Welcome! Jane Scott, P-Card Manager Mary Louise Hughes, Senior Buyer

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Griselda Harrell
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1 Procurement Basics Welcome! Jane Scott, P-Card Manager Mary Louise Hughes, Senior Buyer

2 Purchasing Assistance The University spends over $1 billion per year The University is Tax Exempt By Policy, Purchasing provides help with: Saving your department money Sourcing assistance Creating efficiencies Upholding University Policy & Procedures

3 Topics to Be Covered What are my procurement tools? What are the rules? When do I use each one? How can I get more help? Other areas of consideration Summary Questions throughout

4 Small Dollar Procurement Tools (Under $5000) All restricted items must go on a Requisition radioactives, drugs, alcohol, animals etc even if small dollar Purchasing Card Blanket Orders Limited Purchase Order (LPO)

5 Purchasing Card Preferred method for small dollar (<$5000) Most merchants accept MasterCard Minimal paperwork / handling Restrictions apply Excellent controls Electronic reallocation Merchants like it

6 Blanket Orders For frequent small dollar (<$5000) purchases If bid, will cover LARGE $$ amounts Can make them anytime during the year Purchasing sends out proof requisitions each spring on Blanket Orders that expire June 30th P-Card may handle these types of purchases

7 Limited Purchase Order (LPO) Administered by Accounts Payable < $5000 Purchases Type or print 3 part form then send copies out (1 to vendor, 1 to Accounts Payable, 1 keep) Good for merchants who do not accept p-card Do not use for foreign purchases Do not split into two portions to avoid $5000 limit See AP web site:

8 Large Dollar Procurement Tools (Over $5000) Requisition All purchases expected to be >$5,000 or close should be processed on a requisition. Request for Quotes or Proposals possible. Request for Proposals When low bid is not the main factor By special arrangement with the buyer Purchasing will help you because RFP s can get complicated

9 Requisition All purchases expected to be >$5,000 or close. Bid waiver requests must come with the requisition. All requisitions are not bid. Buyer determines if bidding. (Purchases on state contracts are exempt from bidding) All restricted items MUST go on a Requisition Form found on Purchasing website or CIS Fill it out on-line, print, sign and fax to Purchasing Be descriptive and informative

11 What Happens if it s Bid? Step 1: Requisition gets routed to the buyer Step 2: Buyer gathers bids (3 or more sources) < $50,000; the buyer gets fax or phone bids will take about 3-7 days > $50,000; will be posted to the online bid system will take about days Step 3: Bid results are forwarded to department Step 4: Department accepts low bid or justifies otherwise Step 5: Purchasing Department generates a PO Step 6: Purchasing Department sends PO to vendor FYI: If purchased on a State Contract then no bidding

12 Modifications Purchase Order modifications are made on a Continuation Form Increase/decrease Remove encumbered funds Cancel PO Make changes to PO in any way Continuation Form found on Purchasing Department s website Fill out and fax to Purchasing Department

13 Large or Small Dollar Procurement Tools Payment Requests Reimbursements Campus Orders Between departments

14 Payment Request Administered by Accounts Payable Many Special situations such as: Consultants/Independent Contractor Recruitment & entertainment expense Academic memberships - new NOT a substitute for bidding or following University Policy & Procedures Will take days

15 Reimbursement Administered by Accounts Payable Should only be used for special circumstances or emergency-type procurements example, mileage not associated with travel status Flushing the tax down the drain Paper and labor intensive

16 Campus Orders Administered by Accounts Payable Department to Department Purchase Print & Mail Services, Plant Ops, General Stores, Media Services, Media Solutions, The Point, Red Butte Gardens, Library, Travel, Museum of Fine Arts, Type then give to the Selling dept Transaction shows up on Management Reports Bookstore, Guest House and Chartwells prefer the University MasterCard, not a Campus Order

17 How can I get more help? Purchasing Department Website Buyers and their specialties Restricted Purchases Insurable/Capital Equipment Procurement Tools Contracts & State Contracts Small / Minority / Woman Owned Businesses

18 How can I get more help? Cont d. Campus Information Systems Follow the instructions for sign-in gate.acs.utah.edu

19 Federal Grants All Federal Grant Money has idiosyncrasies of how it is to be spent Grants & Contracts Accounting is the main contact Purchasing gets their approval for equipment purchases If spending towards the end of a grant, leave 8 weeks for procurement procedures to take place. Federal Grant $$ can be turned down if spent too close to the end of a grant.

assistance & help with your needs Accounts Payable:

20 Summary Purchasing Department: Purchasing Card Requisitions/Purchase Orders Blanket Orders Expertise, assistance & help with your needs Accounts Payable: Limited Purchase Orders Payment Requests Campus Orders Bid Limit is $5000

21 The End Questions?

COUNTY COLLEGE OF MORRIS Business and Finance Division Procedures

COUNTY COLLEGE OF MORRIS Business and Finance Division Procedures Page: 09.01.01 Date: Rev. 03/15/16 General Blanket purchase orders are used for buying multiple quantities of like goods or services from a single vendor for a specified period of time. The purpose is